Murphy_ContemporaryLogistics_12e_ppt_Ch01.pptx

ContemporaryLogistics_12e_ppt_Ch01

1. Contemporary Logistics Twelfth Edition, Global Edition Chapter 1 An Overview of Logistics Copyright © 2018 Pearson Education, Ltd. All Rights Reserved.

2. Learning Objectives (1 of 2) 1.1 To discuss the economic impacts of logistics 1.2 To define what logistics is 1.3 To analyze the increased importance of logistics 1.4 To discuss the systems and total cost approaches to logistics

3. Learning Objectives (2 of 2) 1.5 To expose you to logistical relationships within the firm 1.6 To introduce you to marketing channels 1.7 To provide a brief overview of activities in the logistics channel 1.8 To familiarize you with logistics careers

4. Economic Impacts of Logistics Macroeconomic impacts Economic utility Possession utility Form utility Place utility Time utility

5. Table 1.1 : The Cost of the Business Logistics System in Relation to a Country’s Gross Domestic Product (GDP) Sources: Various country reports

6. Logistics : What It Is Council of Supply Chain Management Professionals (CSCMP) definition : “ Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements .” 1 1 www.cscmp.org

7. The Increased Importance of Logistics A reduction in economic regulation Changes in consumer behavior Technological advances Advances in retailing Globalization of trade

8. The Systems and Total Cost Approaches to Logistics (1 of 2) Systems approach Compatibility between a company’s goals and objectives and major functional area goals and objectives Interdependence of functional areas Stock-keeping units (SKUs) Interdependence of logistics activities or intra-functional logistics

9. Figure 1.1: Control Over the Flow of Inbound and Outbound Movements

10. The Systems and Total Cost Approaches to Logistics (2 of 2) Total cost a pproach Cost trade-offs: changes to one activity cause some costs to increase and others to decrease Total logistics c oncept : integration of all activities into a unified whole that seeks to minimize distribution costs in a manner that supports an organization’s strategic objectives

11. Logistical Relationships within the Firm (1 of 2) Finance Production Marketing

12. Logistical Relationships within the Firm (2 of 2) Marketing Place d ecisions Price decisions Landed costs Product decisions Stockouts Sustainable products Promotion decisions

13. Marketing Channels (1 of 3) Marketing channels refer to “a set of institutions necessary to transfer the title to goods and to move goods from the point of production to the point of consumption and, as such, which consists of all the institutions and all the marketing activities in the marketing process.” 2 2 American Marketing Association Dictionary, www.marketingpower.com

14. Marketing Channels (2 of 3) Channel members Manufacturers Wholesalers Retailers

15. Marketing Channels (3 of 3) Ownership channel Covers movement of the title to the goods Negotiation channel Buy and sell agreements are reached Financing channel Payments for goods Promotions channel Promoting a new or existing product Logistics channel Contributes the sorting function to the overall channel process

16. Channel Intermediaries/Facilitators Ownership channel Banks, finance companies Negotiation channel Brokers Financing channel Banks, insurance companies, finance companies Promotions channel Advertising agencies, public relations agencies Logistics channel Freight forwarders

17. Activities in the Logistical Channel Customer service Facility location decisions Inventory management Order management Procurement Transportation management Demand forecasting International logistics Materials handling Packaging Reverse logistics Warehousing management

18. Logistics Careers (1 of 2) Entry-level position examples include: Logistics (supply chain) analyst Consultant Customer service manager Fulfillment supervisor

19. Logistics Careers (2 of 2) Second-level position examples include: International logistics manager Supply chain software manager Purchasing manager Transportation manager Warehouse operations manager

20. Key Terms (1 of 2) 3D printing Big-box retailer Co-branding Container Cost trade-offs Disintermediation Economic utility Form utility Humanitarian logistics Landed cost Logistics Marketing channels Mass logistics Materials management Omnichannel retailing

21. Key Terms (2 of 2) Physical distribution Place utility Possession utility Postponement Sorting function Stock-keeping units (SKUs ) Stockouts Sustainable products Systems approach Tailored logistics Time utility Total cost approach